Roth/MKM initiates coverage on OMS Energy stock with Buy rating

Investing.com - Roth/MKM initiated coverage on OMS Energy Technologies (NASDAQ:OMSE) with a Buy rating and a $10.00 price target on Friday. The company, currently trading at $7.08, shows strong financial health with a P/E ratio of 4.56 and maintains robust liquidity with a current ratio of 2.13, according to InvestingPro data.

The research firm highlighted OMSE’s strategic positioning in the oil and gas sector, noting the company provides equipment and services through 11 manufacturing and distribution centers across the Middle East/North Africa (MENA) and Southeast Asia regions.

Roth/MKM emphasized that OMSE’s facilities and extensive product catalog are well-positioned to leverage strategic investments in both regions where the company operates.

The firm also pointed to OMSE’s increased operational flexibility following its spin-off from Sumitomo in 2023, which has enabled the company to make proactive investments in research and development, sales and marketing initiatives.

According to Roth/MKM, this newfound independence also allows OMSE to pursue potential acquisitions that could strengthen its growth prospects in the energy services sector.

In other recent news, OMS Energy Technologies has made significant strides in expanding its global presence by securing new orders in Angola and Thailand. The company entered the Angola market through an agreement with Grupo Simples Oil for the supply of surface wellhead systems. In Thailand, OMS signed a three-year agreement with PTTEP, effective July 2025. The company also reported a $1.1 million investment in research for developing a metallic seal for high-pressure-high-temperature gate valves, completing Phase 1 of the project. Earlier in 2024, OMS signed a 10-year supply agreement with Saudi Aramco (TADAWUL:2222), potentially generating between $120 million and $200 million annually.

Additionally, OMS Energy Technologies recently debuted on the Nasdaq Capital Market, with its IPO priced at $9 per share, though shares began trading at $8. The IPO consisted of 3,703,704 ordinary shares, raising approximately $33.3 million, excluding underwriting discounts and related expenses. Roth Capital Partners (WA:CPAP) served as the sole manager for the IPO, with Joseph Gunnar & Co., LLC providing financial advisory services. OMS has also extended a 45-day option for the underwriter to purchase additional shares. These developments reflect OMS’s efforts to strengthen its market position and continue its growth trajectory.

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